Convenience and security

The rise of debit card use is attributable to several factors, primarily money management, convenience and security. "Significant awareness was raised about the high interest rates charged by credit cards and the fees for late payments," Sloane says. "Consumers have been educated about the benefits of debit cards. Consumers see it as a way to budget their money more effectively."
"The No. 1 reason consumers are using debit cards is convenience," says Nancy Krattli, the vice president of consumer debit products at Visa. "They provide convenient money management -- you don't have to carry cash, have exact change, and there is no record-keeping because it's on the bank statement."
She says Visa's cardholder surveys indicate that people choose debit for day-to-day transactions such as gas, groceries and drugstore purchases. But, increasingly, they're using them for smaller-ticket transactions such as fast food, coffee at Starbucks, even parking. "The average ticket has gone down," Krattli says. "In 2004 the median was $24, and it has come down to $22 now."
A Visa survey from August 2006 showed that 55% of debit card holders use their cards for purchases of less than $25, and 86% cited convenience as their primary reason.